J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Other Tax Credits

Other tax credits in the law are intended to encourage specific things—research, alternative energy improvements, and so on.

SMALL EMPLOYER HEALTH TAX CREDIT

If you pay more than half of your employees’ health care costs and meet certain payroll limits, you may qualify for a tax credit of up to 35% of your premiums. This credit is explained in Chapter 19.

CREDIT FOR EMPLOYER-PROVIDED CHILD CARE FACILITIES AND SERVICES

You can claim a credit for providing child care facilities and child care referral services. The credit is 25% of qualified facility expenses, plus 10% of referral service costs, for a maximum credit of $150,000. If a company builds a child care facility, the basis of the facility for purposes of depreciation must be reduced by the expenses taken into account in figuring the credit. If the facility ceases to be used for child care within 10 years, the credit is subject to recapture.

RESEARCH CREDIT

This credit expired at the end of 2011. If extended, then the following information applies for 2012. If you engage in search and experimentation, you may claim a credit of 20% of increased research activities (increased costs this year compared with a base period that is usually the 3 preceding years). Alternatively you may claim an alternative simplified credit, which works best for a company that had little or no R&D spending in the previous 3 years. This credit is 14% of the amount of current-year R&D spending that exceeds 50% of the average spent ...